Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs
Government budget balance forces the endogenous use of distortionary tax instruments" when an exogenous reform is implemented. The aggregate efficiency of such reforms is based" on comparisons of simple summary measures of the Marginal Cost of Funds of the various tariff" or quota changes with the Marginal Cost of Funds of the alternative taxes Benefit of Government supplied goods. The aggregate efficiency of tariff liberalization is" dubious, while quota liberalization is more likely to be efficient. Social welfare rises with" aggregate efficiency unless distribution effects are perverse. Plausible sufficient conditions for" non-perverse distributional effects are provided. The results frame a diagnostic method for" sensitivity analysis in evaluations of trade and tax policies.
|Date of creation:||Sep 1997|
|Date of revision:|
|Publication status:||published as Anderson, J. E. "Trade Reform Diagnostics With Many Households, Quotas, And Tariffs," Review of International Economics, 2002, v10(2,May), 215-236.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James E. Anderson, 1997.
"Trade Reform with a Government Budget Constraint,"
Boston College Working Papers in Economics
348., Boston College Department of Economics.
- Krishna, K. & Erzan, R. & Tan, L.H., 1991.
"Rent Sharing In The Multi-Fibre Arrangement: Theory And Evidence From Us Apparel Imports From Hong Kong,"
Harvard Institute of Economic Research Working Papers
1549, Harvard - Institute of Economic Research.
- Krishna, Kala & Erzan, Refik & Tan, Ling Hui, 1994. "Rent Sharing in the Multi-fibre Arrangement: Theory and Evidence from U.S. Apparel Imports from Hong Kong," Review of International Economics, Wiley Blackwell, vol. 2(1), pages 62-73, February.
- Kala Krishna & Refik Erzan & Ling Hui Tan, 1991. "Rent Sharing in the Multi-Fibre Arrangement: Theory and Evidence from US Apparel Imports from Hong Kong," NBER Working Papers 3673, National Bureau of Economic Research, Inc.
- Erzan, Refik & Krishna, Kala & Ling Hui Tan, 1991. "Rent sharing in the multi-fibre arrangement : theory and evidence from US apparel imports from Hong Kong," Policy Research Working Paper Series 597, The World Bank.
- Tatsuo Hatta, 1977. "A Theory of Piecemeal Policy Recommendations," Review of Economic Studies, Oxford University Press, vol. 44(1), pages 1-21.
- Lopez, Ramon & Panagariya, Arvind, 1992. "On the Theory of Piecemeal Tariff Reform: The Case of Pure Imported Intermediate Inputs," American Economic Review, American Economic Association, vol. 82(3), pages 615-25, June.
- Anderson, James E & Neary, J Peter, 1994.
"The Trade Restrictiveness of the Multi-fibre Arrangement,"
World Bank Economic Review,
World Bank Group, vol. 8(2), pages 171-89, May.
- James E. Anderson & J. Peter Neary, 1993. "The Trade Restrictiveness Of The Multi-Fibre Arrangement," Boston College Working Papers in Economics 252, Boston College Department of Economics.
- Levy, Santiago & van Wijnbergen, Sweder, 1995. "Transition Problems in Economic Reform: Agriculture in the North American Free Trade Agreement," American Economic Review, American Economic Association, vol. 85(4), pages 738-54, September.
- Fukushima, Takashi, 1981. "A dynamic quantity adjustment process in a small open economy, and welfare effects of tariff changes," Journal of International Economics, Elsevier, vol. 11(4), pages 513-529, November.
- Ahmad, Ehtisham & Stern, Nicholas, 1990. "Tax Reform and Shadow Prices for Pakistan," Oxford Economic Papers, Oxford University Press, vol. 42(1), pages 135-59, January.
- Peter A. Diamond & J. A. Mirrlees, 1968. "Optimal Taxation and Public Production," Working papers 22, Massachusetts Institute of Technology (MIT), Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:6181. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.